What's The Long Short Fund All About?

By Author: Jamie Hanson
Total Articles: 3495
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If you are an investor you may have heard about the long short fund and are wondering what it's all about. It's natural you would be interested because it is being touted as the new way to invest in the stock market. So far, the long short fund method of investment has been successful and many investors are pleased with this method. However, there are no guarantees when it comes to investing and investors should not get confused with the potential success of this fund with "guaranteed" success. In an investment climate where so many investors are lost money there is no shock that many are looking for the next sure way to get back on top. Despite the long short fund being a really great investment method it's not guaranteed and in the stock market there are no sure things. That's why it is so important for investors to understand the implications of the long short fund not to mention its vulnerabilities and shortcomings.

Perhaps the biggest vulnerability of the long short fund is not the stock market's fluctuations but rather time. The long short fund is still a new investment method and as a result there is not enough ...
... history to evaluate its performance over the long haul. Because of this there is no way for investors to look at the history of various long short funds and see how they have performed multiple decades. Sure, there is at least 10 years worth of data to help investors when it comes to deciding on whether or not to invest in a long short fund, but that's not nearly the same as 60 or 70 years worth of data.

There are many investing strategies and methods that have been in play for many years that work well. The problem with many of those is that there was no built in strategy to compensate for the fluctuations within the market. The long short fund does have a built in strategy and the goal is to have positive returns regardless of market direction.

Long-Short mutual funds are offered by Bull Path Capital Management, a New York based registered equity asset management firm specializing in long-short strategies.